New Tightening Measures Targeting Low-Wage Temporary Foreign Workers

Introduction

Our two levels of government recently announced new measures for temporary foreign workers. These are in fact surprise announcements, which have generated concerns among foreign employers and employees. However, these measures are not necessarily new in the immigration landscape in Canada. This article aims to dissect the new measures in order to better understand the impact on businesses. It should also be understood that we will have more details on the application of these measures in the coming days or weeks, as the various entities (Service Canada, the Ministère de l'Immigration, de la Francisation et de l'Intégration du Québec (MIFI) and Immigration, Refugees and Citizenship Canada (MIFI) and Immigration, Refugees and Citizenship Canada (IRCC)) publish them. Our SII and SRI teams are closely monitoring the evolution of these files for you.

The New Measures

At the provincial level

Freeze on the hiring of low-wage foreign workers in the Montreal region
As of September 3, 2024, the provincial government is imposing a freeze on the hiring of low-wage foreign workers in the Montreal region for a period of 6 months. This measure does not affect workers in the fields of health, education, agriculture, and food processing.

• Affected positions : Workers in low-wage jobs, which is less than $27.47 per hour.
• Impact : Any request for an LMIA (Labour Market Impact Study) and a DST (Request for Temporary Selection, former Quebec Selection Certificate) for the workers concerned in Montreal will not be processed. Immigration Canada will therefore not be able to issue a work permit.
• Exceptions : Businesses located outside of Montreal Island are not affected by this measure.

At the federal level

Starting on September 26, 2024, three new measures affecting low-wage temporary foreign workers will come into force:

1. Reduction in the percentage of low-wage foreign workers in a company to 10% of the workforce.
2. Reduced work permit duration from 24 months to 12 months for low-wage temporary foreign workers.
3. Refusal to process LMIA applications for temporary foreign workers in urban areas when the unemployment rate exceeds 6%.

Details of the Measures:

• Percentage of foreign workers : The limit, which was increased to 20% (and even 30% for some sectors) during the pandemic, returns to the pre-pandemic norm of 10%.
• Duration of work permit : Any work permit for a low-wage position will now be issued for a period of 12 months, instead of 24 months.
• Urban areas and unemployment rates : In census metropolitan areas where the unemployment rate exceeds 6% (as published by Statistics Canada), LMIA applications for low-wage foreign workers will not be processed. Exceptions will be granted for seasonal and non-seasonal jobs in sectors related to food security (primary agriculture, food processing, and fish processing), as well as for construction and health jobs.

Conclusion

In Quebec, the category of LMIA CAQ under simplified treatment remains an option for occupations severely affected by the labour shortage. This category is not subject to the 10% limit and is processed according to the criteria for high-wage applications, even if the rate of pay is less than $27.47. Workers recruited under this category should not be considered low-wage workers when calculating the 10% limit.

It is important to note that the list of occupations benefiting from simplified treatment is updated every February. If no changes are made to this category, it could continue to help businesses that have hired or want to hire workers for occupations included in this component.

For more details

For more details, please refer to the following link:
https://www.canada.ca/fr/emploi-developpement-social/services/travailleurs-etrangers.html

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